Which comparison would be affected if imputed rent of owner-occupied housing were excluded?
Answer and explanation
Correct answer: Comparison of housing services from rented and owner-occupied houses
Imputed rent is the estimated rental value of housing services consumed by owners who live in their own houses. Including it places owner-occupied and rented housing on a comparable basis in national-income accounting. If it is excluded, owner-occupied housing appears to provide no measured service, so option A is correct; exports, wages, profits, taxes and subsidies are not the comparison described.
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What is the correct answer to this question?
Comparison of housing services from rented and owner-occupied houses
Why is this the correct answer?
Imputed rent is the estimated rental value of housing services consumed by owners who live in their own houses. Including it places owner-occupied and rented housing on a comparable basis in national-income accounting. If it is excluded, owner-occupied housing appears to provide no measured service, so option A is correct; exports, wages, profits, taxes and subsidies are not the comparison described.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates.
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